Internet taxes for equipmentQuestion Am I taxed on business equipment bought on the Internet from another state?
Answer You can be taxed on business equipment bought online from another state if:
- Your state has a sales tax - Your state has a corresponding use tax - The supplier has not collected and paid the tax If the vendor has no presence in your state, they're not required to collect the tax, but you still may be required to remit sales tax to your state. In order to collect badly-needed revenues, states are looking for tax opportunities on big-ticket items, such as heavy machinery. State authorities typically check for unpaid use taxes when examining a business's sales tax collections.
Brain Trust contributor:
Author of J.K. Lasser's Small Business Taxes 2007
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